The net pre-tax benefits if annual sales are $15 million.

Question

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Answer 1

Question

Chapter 17, Problem 6P

a.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million.

a.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $8,630.14.

Explanation of Solution

Determine the annual pre-tax earnings

Annual Pretax Earnings=Average Daily Collection×Interest Rate×Reduction in Collection Time=$15,000,000$365×7%×3=$8,630.14

Therefore, the amount of funds released is $8,630.14.

Determine the additional collection costs

Additional Collection Costs=Variable Costs×Total Collection Centers×Total Working Days=$10−$0.50×6×250=$14,250

Therefore, the additional collection costs is $14,250.

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$8,630.14−$14,250=−$5,619.86

Therefore, the net pre-tax benefits is -$5,619.86.

b.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million.

b.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $28,900.68.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×3−$10−$0.50×6×250=$43,150.68−$14,250=$28,900.68

Therefore, the net pre-tax benefits is -$28,900.68.

c.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million with 2 days of collection time.

c.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $2,753.42.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$15,000,000$365×7%×2−$2.50−$0.50×6×250=$5,753.42−$3,000=$2,753.42

Therefore, the net pre-tax benefits is $2,753.42.

d.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million with 2 days of collection time.

d.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $25,767.12.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×2−$2.50−$0.50×6×250=$28,767.12−$3,000=$25,767.12

Therefore, the net pre-tax benefits is $25,767.12.

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Answer 2

Question

Chapter 17, Problem 6P

a.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million.

a.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $8,630.14.

Explanation of Solution

Determine the annual pre-tax earnings

Annual Pretax Earnings=Average Daily Collection×Interest Rate×Reduction in Collection Time=$15,000,000$365×7%×3=$8,630.14

Therefore, the amount of funds released is $8,630.14.

Determine the additional collection costs

Additional Collection Costs=Variable Costs×Total Collection Centers×Total Working Days=$10−$0.50×6×250=$14,250

Therefore, the additional collection costs is $14,250.

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$8,630.14−$14,250=−$5,619.86

Therefore, the net pre-tax benefits is -$5,619.86.

b.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million.

b.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $28,900.68.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×3−$10−$0.50×6×250=$43,150.68−$14,250=$28,900.68

Therefore, the net pre-tax benefits is -$28,900.68.

c.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million with 2 days of collection time.

c.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $2,753.42.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$15,000,000$365×7%×2−$2.50−$0.50×6×250=$5,753.42−$3,000=$2,753.42

Therefore, the net pre-tax benefits is $2,753.42.

d.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million with 2 days of collection time.

d.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $25,767.12.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×2−$2.50−$0.50×6×250=$28,767.12−$3,000=$25,767.12

Therefore, the net pre-tax benefits is $25,767.12.

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Answer 3

Question

Chapter 17, Problem 6P

a.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million.

a.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $8,630.14.

Explanation of Solution

Determine the annual pre-tax earnings

Annual Pretax Earnings=Average Daily Collection×Interest Rate×Reduction in Collection Time=$15,000,000$365×7%×3=$8,630.14

Therefore, the amount of funds released is $8,630.14.

Determine the additional collection costs

Additional Collection Costs=Variable Costs×Total Collection Centers×Total Working Days=$10−$0.50×6×250=$14,250

Therefore, the additional collection costs is $14,250.

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$8,630.14−$14,250=−$5,619.86

Therefore, the net pre-tax benefits is -$5,619.86.

b.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million.

b.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $28,900.68.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×3−$10−$0.50×6×250=$43,150.68−$14,250=$28,900.68

Therefore, the net pre-tax benefits is -$28,900.68.

c.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million with 2 days of collection time.

c.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $2,753.42.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$15,000,000$365×7%×2−$2.50−$0.50×6×250=$5,753.42−$3,000=$2,753.42

Therefore, the net pre-tax benefits is $2,753.42.

d.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million with 2 days of collection time.

d.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $25,767.12.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×2−$2.50−$0.50×6×250=$28,767.12−$3,000=$25,767.12

Therefore, the net pre-tax benefits is $25,767.12.

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Answer 4

Question

Chapter 17, Problem 6P

a.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million.

a.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $8,630.14.

Explanation of Solution

Determine the annual pre-tax earnings

Annual Pretax Earnings=Average Daily Collection×Interest Rate×Reduction in Collection Time=$15,000,000$365×7%×3=$8,630.14

Therefore, the amount of funds released is $8,630.14.

Determine the additional collection costs

Additional Collection Costs=Variable Costs×Total Collection Centers×Total Working Days=$10−$0.50×6×250=$14,250

Therefore, the additional collection costs is $14,250.

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$8,630.14−$14,250=−$5,619.86

Therefore, the net pre-tax benefits is -$5,619.86.

b.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million.

b.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $28,900.68.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×3−$10−$0.50×6×250=$43,150.68−$14,250=$28,900.68

Therefore, the net pre-tax benefits is -$28,900.68.

c.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million with 2 days of collection time.

c.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $2,753.42.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$15,000,000$365×7%×2−$2.50−$0.50×6×250=$5,753.42−$3,000=$2,753.42

Therefore, the net pre-tax benefits is $2,753.42.

d.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million with 2 days of collection time.

d.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $25,767.12.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×2−$2.50−$0.50×6×250=$28,767.12−$3,000=$25,767.12

Therefore, the net pre-tax benefits is $25,767.12.

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Answer 5

Chapter 17, Problem 6P

a.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million.

a.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $8,630.14.

Explanation of Solution

Determine the annual pre-tax earnings

Annual Pretax Earnings=Average Daily Collection×Interest Rate×Reduction in Collection Time=$15,000,000$365×7%×3=$8,630.14

Therefore, the amount of funds released is $8,630.14.

Determine the additional collection costs

Additional Collection Costs=Variable Costs×Total Collection Centers×Total Working Days=$10−$0.50×6×250=$14,250

Therefore, the additional collection costs is $14,250.

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$8,630.14−$14,250=−$5,619.86

Therefore, the net pre-tax benefits is -$5,619.86.

b.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million.

b.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $28,900.68.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×3−$10−$0.50×6×250=$43,150.68−$14,250=$28,900.68

Therefore, the net pre-tax benefits is -$28,900.68.

c.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million with 2 days of collection time.

c.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $2,753.42.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$15,000,000$365×7%×2−$2.50−$0.50×6×250=$5,753.42−$3,000=$2,753.42

Therefore, the net pre-tax benefits is $2,753.42.

d.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million with 2 days of collection time.

d.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $25,767.12.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×2−$2.50−$0.50×6×250=$28,767.12−$3,000=$25,767.12

Therefore, the net pre-tax benefits is $25,767.12.

Answer 6

Chapter 17, Problem 6P

a.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million.

a.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $8,630.14.

Explanation of Solution

Determine the annual pre-tax earnings

Annual Pretax Earnings=Average Daily Collection×Interest Rate×Reduction in Collection Time=$15,000,000$365×7%×3=$8,630.14

Therefore, the amount of funds released is $8,630.14.

Determine the additional collection costs

Additional Collection Costs=Variable Costs×Total Collection Centers×Total Working Days=$10−$0.50×6×250=$14,250

Therefore, the additional collection costs is $14,250.

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$8,630.14−$14,250=−$5,619.86

Therefore, the net pre-tax benefits is -$5,619.86.

Answer 7

Chapter 17, Problem 6P

a.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million.

Answer 8

a.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $8,630.14.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Determine the annual pre-tax earnings

Annual Pretax Earnings=Average Daily Collection×Interest Rate×Reduction in Collection Time=$15,000,000$365×7%×3=$8,630.14

Therefore, the amount of funds released is $8,630.14.

Determine the additional collection costs

Additional Collection Costs=Variable Costs×Total Collection Centers×Total Working Days=$10−$0.50×6×250=$14,250

Therefore, the additional collection costs is $14,250.

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$8,630.14−$14,250=−$5,619.86

Therefore, the net pre-tax benefits is -$5,619.86.

Answer 13

b.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million.

b.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $28,900.68.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×3−$10−$0.50×6×250=$43,150.68−$14,250=$28,900.68

Therefore, the net pre-tax benefits is -$28,900.68.

Answer 14

b.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million.

Answer 15

b.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $28,900.68.

Answer 16

b.

Expert Solution

Answer 17

b.

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×3−$10−$0.50×6×250=$43,150.68−$14,250=$28,900.68

Therefore, the net pre-tax benefits is -$28,900.68.

Answer 20

c.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million with 2 days of collection time.

c.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $2,753.42.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$15,000,000$365×7%×2−$2.50−$0.50×6×250=$5,753.42−$3,000=$2,753.42

Therefore, the net pre-tax benefits is $2,753.42.

Answer 21

c.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $15 million with 2 days of collection time.

Answer 22

c.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $15 million is $2,753.42.

Answer 23

c.

Expert Solution

Answer 24

c.

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$15,000,000$365×7%×2−$2.50−$0.50×6×250=$5,753.42−$3,000=$2,753.42

Therefore, the net pre-tax benefits is $2,753.42.

Answer 27

d.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million with 2 days of collection time.

d.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $25,767.12.

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×2−$2.50−$0.50×6×250=$28,767.12−$3,000=$25,767.12

Therefore, the net pre-tax benefits is $25,767.12.

Answer 28

d.

Summary Introduction

To determine: The net pre-tax benefits if annual sales are $75 million with 2 days of collection time.

Answer 29

d.

Expert Solution

Answer to Problem 6P

The net pre-tax benefits if annual sales are $75 million is $25,767.12.

Answer 30

d.

Expert Solution

Answer 31

d.

Expert Solution

Answer 32

Expert Solution

Answer 33

Explanation of Solution

Determine the net pre-tax benefits

Net Pretax Benefits=Annual Pretax Earnings−Additional Collection Costs=$75,000,000$365×7%×2−$2.50−$0.50×6×250=$28,767.12−$3,000=$25,767.12

Therefore, the net pre-tax benefits is $25,767.12.

Answer 34

Ch. 17 - Prob. 1QTD Ch. 17 - Prob. 2QTD Ch. 17 - Prob. 3QTD Ch. 17 - Prob. 4QTD Ch. 17 - Prob. 5QTD Ch. 17 - Prob. 6QTD Ch. 17 - Prob. 7QTD Ch. 17 - Prob. 8QTD Ch. 17 - Prob. 9QTD Ch. 17 - Prob. 10QTD

The net pre-tax benefits if annual sales are $15 million.

To determine: The net pre-tax benefits if annual sales are $15 million.

Answer to Problem 6P

Explanation of Solution

To determine: The net pre-tax benefits if annual sales are $75 million.

Answer to Problem 6P

Explanation of Solution

To determine: The net pre-tax benefits if annual sales are $15 million with 2 days of collection time.

Answer to Problem 6P

Explanation of Solution

To determine: The net pre-tax benefits if annual sales are $75 million with 2 days of collection time.

Answer to Problem 6P

Explanation of Solution

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